From 2016, students from the UK and European Union can apply for a postgraduate student loan of up to £10,000 to cover the costs of studying a masters degree in the UK. Our colleagues at Loughborough University London have provided the key facts about the new scheme below:
Which courses are eligible?
- The loan is for masters courses in all subjects beginning on or after 1st August 2016, including taught and research masters.
- Your programme can be a full-time (1-2 years), part-time (2 years) or distance learning course. If your chosen course is only available part-time, a 3 year course will be accepted. Your course must be at a UK university.
- MA, MSc, MRes, MBA, Med or LLM courses are accepted. Postgraduate Diplomas and PGCEs are also eligible. MPhil programmes lasting 2 years or less are also included, but the loan will not cover PhDs.
How much can I borrow?
- Full time students can borrow any amount up to £10,000, which will be issued in three instalments over the academic year. Loans for part-time study are capped at £5,000 per year, for 2 years.
- It is your choice how you spend the money, though the loan is intended to cover the cost of your tuition fees, learning resources and/or living expenses.
Who can apply?
- To get the loan, you must be living in England and intend to study your masters at a UK university. UK nationals and those with settled status in the UK can apply, so long as they have been living in England for 3 years.
- EU, EEA or Swiss nationals living in the EU, EEA or Switzerland are also eligible, so long as they are intending to study at a UK University.
When do I repay the loan?
- You are required to repay the loan once you finished or left your course and your income is over £21,000 a year (frozen until 2021).
- Once you earn over this amount, the Government will automatically take 6% of what you earn over the threshold. Any loan remaining 30 years after you start making repayments will be written off.
Will I be charged interest?
- Interest will be charged at the Retail Price Index (RPI) plus 3% from the day you receive your first payment until the loan is paid in full.
When can I apply?
- You can apply for a loan from the end of June 2016. Further information about application dates can be found here.
For more information and a case study example of how the loan works, visit the Loughborough University London website.